Paper Money

The modern system for dealing with a currency problem arose in England during the reign of King William, the Protestant Dutch royal who had been imported to the throne of England in 1689, to replace the unacceptably Catholic King James II. William was a competent ruler, but he had serious baggage—a long-running dispute with King Louis XIV of France. Before long, England and France were involved in a new phase of this dispute, which now seems part of a centuries-long conflict between the two countries, but at the time was variously called the Nine-Years’ War or King William’s War. This war presented the usual problem: how could the nations afford it? King William’s administration came up with a novel answer: borrow a huge sum of money, and use taxes to pay back the interest over time. In 1694, the English government borrowed 1.2 million pounds at a rate of eight per cent, paid for by taxes on ships’ cargoes, beer, and spirits. In return, the lenders were allowed to incorporate themselves as a new company, the Bank of England. The bank had the right to take in deposits of gold from the public and—a second big innovation—to print “Bank notes” as receipts for the deposits. These new deposits were then lent to the King. The banknotes, being guaranteed by the deposits, were as good as gold money, and rapidly became a generally accepted new currency.

Trail of Tears

Watching OUTLANDER reminds me of the removal of the Cherokee from the southeastern US to Oklahoma. Andrew Jackson was the engine behind the clearances that opened up part of the states of Tenn, NC and SC to settlers. The Cherokee were simply in the way so the entire nation was force marched to new territory in the late 1830s. Ironic since the Cherokee had an alphabet and written language, lived in 2 story homes, adopted many of the "white ways", and were known as one of the "civilized tribes". Their communal farmlands were admired by visitors, and they were generally a peaceful tribe. If you want to see a full blooded Cherokee, Wes Studi is a good representation. He was Magwa in Last of the Mohicans, and Geronimo in a recent film. In teaching US History, the Cherokee story, the Osage disaster, and the fates of many other tribes present a challenge, and a lesson.

The Hinge of History

The first day of Gettysburg, that great battle, ended 156 years ago today. The Confederate forces were in advantageous positions, but the Union Army had more men, more resources. For the next two days, the titanic clash felled soldiers on both sides, and made the little town of Gettysburg immortal in military annals. Lee's eventual defeat damaged the reputation of the Army of Northern Virginia as invincible, and gave the Union some confidence that they could win the war. But there was another military action happening a few hundred miles away at Vicksburg, on the Mississippi River. Grant's siege of the river fortress city was at its climax, and a day after Lee withdrew from Gettysburg, the city and 30,000 Confederate soldiers surrendered. Now the Union controlled the great river along it's entire length. Lincoln wrote "the Father of Waters once again flows unvexed to the sea". The Confederacy was now split, and Grant was sent east to deal with the still-dangerous Robert E. Lee. The war in the west was won and now the Union focused on destroying Lee and his army.